Tanesco signs Sh63 billion deal to boost power supply to Geita mine

The useful part

Company (Tanesco) has signed a Sh63.19 billion contract with Cotech Engineering Company to expand electricity infrastructure serving Geita Gold Mine (GGM), as demand for power at the mine is expected to more than double. Energy, Ms Salome Makamba said reliable electricity was increasingly important as Tanzania seeks to attract more investment in mining and mineral processing. Tanesco said the Geita project was also a commercial investment, as the utility currently supplies GGM with up to 36 megawatts (MW), while demand is projected to reach about 80MW as the mine expands.

How it works

• Tanesco Managing Director Lazaro Twange said additional capacity would be required to support the mine's expanding operations.
• "The mining sector is growing rapidly, and modern mining operations require reliable electricity to run machinery efficiently and increase production," he said.
• The project is being implemented under Tanesco's Mapato Projects programme, which has been allocated Sh228 billion for 42 projects.
• More than 70 percent of the funds are being directed to projects serving mining companies, according to Mr Twange.
• "We are investing in areas where there is demand because these projects are expected to generate revenue for Tanesco," he said.

What to take from it

"Reliable electricity is no longer simply a public utility issue. At GGM, Principal Reliability Engineer, Mr Seif Maftah said the mine's current maximum demand was between 36MW and 38MW but coul...

Details worth keeping

It is a critical component of our investment strategy," she said.